US stocks sink as investors fret over China - New York Report

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US STOCK indexes plunged almost four per cent yesterday as investors, rattled about China’s economy, sold heavily in an unusually volatile session.

The Dow Jones industrial average briefly slumped more than 1,000 points, its most dramatic intraday trading range ever, before clawing back some of the losses to close down 588.4 points, or 3.57 per cent, at 15,871.35. Key index component Apple, which fell as much as 13 per cent, ended down 2.5 per cent at $103.12.

The S&P 500 lost 77.68 points, or 3.94 per cent, to 1,893.21, putting it formally in correction mode. An index is considered to be in correction when it closes 10 per cent below its 52-week high.

It was the gauge’s worst day since 2011 and followed an 8.5 per cent slump in Chinese markets, which sparked a sell-off in global stocks, oil and other commodities .

Some investors unloaded stocks ahead of the close after looking to make money from volatile price swings earlier in the session.

Exxon and Chevron each fell more than 4.7 per cent. U.S. oil and gas companies have lost about $310 billion of market value this year.

Alibaba dropped 3.49 per cent to $65.80, below its IPO price of $68, making it the second high-profile tech company to fall below its IPO price in the past week after Twitter on Thursday.

Wall Street stayed in a narrow range for much of 2015, but volatility has jumped as investors became increasingly concerned about a potential stumble in China’s economy.

The Dow Jones industrial averae briefly slumped more than 1,000 points, its most dramatic intraday trading range ever, before clawing back some of the losses to close down 588.4 points, or 3.57 per cent, at 15,871.35. Key index component Apple,which fell as much as 13 per cent, ended down 2.5 per cent at $103.12.

The S&P 500 lost 77.68 points, or 3.94 percent, to 1,893.21, putting it formally in correction mode. It was the index's worst day since 2011 and followed an 8.5 percent slump in Chinese markets, which sparked a sell-off in global stocks along with oil and other commodities .